The prices of Oil on Monday dropped by over 6% after Iran attacked a US military base in neighbouring Qatar in retaliation for US weekend strikes on Iranian nuclear facilities.
According to a US defence official, there were no known American casualties from the incident. Analysts have also pointed out that the incident did not appear to be near key oil infrastructure.
The Iran-Israel clash has focused worry on the Strait of Hormuz, a strategic waterway for seaborne oil that has long been used by Iran as a geopolitical bargaining chip.
Tehran has for decades threatened to close the strait every time tensions soared, but never acted on its warning.
On Monday, futures for West Texas Intermediate fell 6.5 percent to $69.96 a barrel, while Brent oil futures dropped 6.4 percent to $72.07 a barrel, its lowest level in 10 days.